Cabinet officially slashes 675 business conditions

Updated: 16:13’ - 08/02/2018

In order to improve the legal system as well as the investment and business environment, the Government on January 15 issued Decree 08 to remove 675 out of existing 1,216 business and investment conditions under the management of the Ministry of Industry and Trade.

The Government on January 15 issued Decree 08 to remove 675 out of existing 1,216 business and investment conditions__Photo: Internet

The Government has decided to ease conditions for doing business and making investment in eight fields, including petrol and oil, cigarette, electricity, commercial franchise, e-commerce, chemicals, industrial explosives and food trading.

Regarding the petrol and oil trading, a number of provisions of Decree No. 83/2014/ND-CP, have been streamlined, particularly those on conditions on petrol and oil importers and exporters.

Specifically, three years after being licensed for petrol and oil import or export, a trader is no longer required to own or co-own with a capital contribution of at least 51 percent of the depot system, which meets at least one-third of the trader’s reserve demand.

In addition, two years after being granted a petrol and oil import or export license, a trader is no longer required to own or co-own vehicles for domestic petrol and oil transportation with a total load capacity of at least 3,000 cubic meters.

Every year after being granted a petrol and oil import or export license, a trader is not required to own or co-own at least four petrol and oil retail stations until its distribution system has at least 100 petrol and oil retail stations.

Regarding commercial franchise, the new regulation modifies Section 1 of Decree 35/2006/ND-CP by reducing the conditions on franchisors prescribed in Article 5, abolishing the conditions on franchisees in Article 6, and removing the restrictions on goods and services permitted for commercial franchising in Article 7.

As a result, a trader is now permitted to grant commercial rights when its business system intended for franchise has been in operation for at least one year.-